The TRACES portal has issued a crucial advisory, significantly shortening the window for submitting correction statements related to TDS/TCS to a period of two years.
This means that all correction statements about Fiscal Year 2018-19 (Quarter 4), Fiscal Years 2019-20 through 2022-23 (Quarters 1 to 4), and Fiscal Year 2023-24 (Quarters 1 to 3) will only be accepted until March 31, 2026. After this date, specifically from April 1, 2026, these statements will be considered time-barred by limitation and will no longer be processed.
This change aligns with the upcoming legislative shift, as the Income Tax Act, 1961, is slated for repeal effective April 1, 2026, under Section 536 of the new Income Tax Act, 2025.
Furthermore, Section 397(3)(f) of the Income Tax Act, 2025, stipulates that a deductor/collector is permitted to furnish a correction statement, in the prescribed form and manner, to the relevant authority within two years from the conclusion of the tax year in which the original statement was due under the specified clauses or Section 200 of the Income-tax Act, 1961.
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The Income Tax Department urges all deductors, collectors, and other stakeholders to take immediate note of this update. They are strongly advised to complete any necessary corrections for the aforementioned periods well in advance, as the opportunity to file these corrections will expire due to the limitation on March 31, 2026.
Read TRACES Official Advisory
